Vusumuzi Dube
Judith Phiri, Business Reporter
THE National Railways of Zimbabwe Contributory Pension Fund (NRZCPF) has launched the Revitus Real Estate Investment Trust (REIT), a collective investment scheme that will strategically repurpose commercial buildings across the country into modern and environmentally friendly buildings that generate high rental income.
Licensed by the Securities Exchange Commission of Zimbabwe (SECZIM), Revitus REIT offers to purchase distressed properties at a discount, pull them into the REVITUS REIT Fund and then turn around the properties to deliver value for the investment community.
Speaking at the launch in Bulawayo on Wednesday, NRZCPF board chairman, Mr Takunda Madanha said setting up the REIT was an opportunity to raise external funding and co-invest with like-minded pension funds and other investors to revive the selected buildings that were seeded into the REIT.
“The Revitus REIT came about to enhance the pension benefits of its members by improving the rental earning capacity and values of the underlying buildings. It will stem urban decay and contribute to the urban regeneration and revival of business districts (CBDs) through renovating and repurposing buildings,” he said.
“One is supposed to invest a minimum of US$5 000 for each investor, we have got four properties that we are going to start with for repurposing, in Bulawayo it will be Africa House and Pioneer House and in Harare Atlas House and Electra House.”
He said they have strategically selected a diverse range of properties, such as commercial office spaces, residential complexes, retail outlets, and industrial parks with flexible tenancy and potential of being reconfigured, remodeled and turned around.
Mr Madanha said they have partnered with a number of reputable service providers and institutions to be able to deliver a product that meets the needs of the market whilst also benefiting us as a pension fund, it’s a win-win arrangement.
He said the team includes their fund manager, CBZ Asset Management (trading as Datvest), trustee Stanbic Bank Limited as well as other professionals such as their financial advisor, Intellego Investment Consultants and legal advisor, Mundia and Mudhara.
Mr Madanha said their auditor was BDO with the sponsoring broker being IH Securities and property manager, Dawn Property Consultants just to mention a few.
“These were supported by a strong technical team of engineers, architects and quantity surveyors led by Turner and Townsend as the project managers. One of the appealing features of our REIT is the regular dividend distributions to shareholders,” he said.
The Fund manager, Datvest managing director, Mr Tendai Muzadzi said the launch of the Revitus REIT was a significant step towards securing and creating value for stakeholders and driving sustainable growth.
He said NRZCPF intends to sell a total of 121 378 791 units in the Revitus REIT at an offer price of ZWL$400.00 per unit by way of an offer for units to the investing public.
“At the conclusion of the Initial Public Offer (IPO), it is envisaged that the units will be listed on the ZSE. The funds are meant for the renovation and revitalisation of portfolio properties in order to enhance their income-generating capacity thus enhancing the pension benefits for NRZCPF members through uplifting the values of the underlying property portfolio,” he added.
Mr Muzadzi said the opening date for the offer w 16 November and the closing date for the offer being 7 December, while the listing date for the offer is 15 December this year.
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